No buyer yet for M&Co amid report of redundancies
Hopes of a fast rescue of failed value clothing chain M&Co are fading as the expected list of potential buyers has failed to materialise. Press reports said administrators at Teneo had set an auction deadline of early this week for interested bidders.
The company fell into administration for the second time in two years earlier this month. The Scotland-based chain (formerly called Mackay’s) operates 170 stores and employs almost 2,000 people.
It’s believed that turnaround specialist Alteri isn’t interested and nor is Hilco, which had financed it in a pre-pack deal back in 2020 on its first administration filing. It’s interesting that the usual retail giants aren’t believed to be bidding either with acquisition-focused Frasers Group, Next and M&S not interested, reports said.
That’s not to say a rescue deal won’t happen. But even if a deal comes through, some stores are set to close.
The business is still trading and is currently running clearance sales with discounts of up to 50%.
The company collapse was blamed on sharply increasing costs mixed with consumers battling the cost-of-living crisis.
Meanwhile Drapers reported that a number of people have been made redundant at the firm’s head office in Scotland with the marketing and IT departments affected, as well as its production studios.
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